Isra-Mart srl: DECC renewables expert slams ministers' EV reluctance

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Plans to tighten up security for the EU's emissions trading scheme (EU ETS) have today been endorsed by the UK government and the European climate change committee.

The European Commission acted to introduce new security standards after a spate of cyber attacks earlier this year forced carbon registries across the continent to suspend trading.

It plans to introduce measures that would bring security for the carbon market into line with state-of-the-art measures used in the financial sector. The move, including the introduction of a Europe-wide Single Registry to replace national registries in early 2012, is intended to prevent a reocurrence of the cyber fraud experienced earlier this year.

The measures include introduction of a trusted account list, strengthened customer checks, new account categories, and out-of-band confirmation of transactions.

The authorities will also have the power to freeze allowances and accounts or delay transactions in cases of suspected fraud, and will have wider access to confidential information.

Measures will also be put in place to make sure the market is less disrupted when frauds occur.

The proposed regulations will be adopted after a three-month scrutiny phase, assuming the European Parliament and the Council do not raise objections.

"With these measures and a more harmonised approach for the third phase of the ETS due to start in 2013, we have certainly strengthened the integrity of the European carbon market," said climate commissioner Connie Hedegaard.

Greg Barker, UK climate change minister, added that the proposals would lend added protection to a market that has a significant presence in London.

"The new rules will put serious obstacles in the way of carbon crooks, while ensuring this valuable market... can continue to function effectively," he said. "I want the City of London to remain the global capital for carbon trading and green finance, and today's decision is an important step to protect this market and restore confidence."